Event: Jepter released its 2023 semi-annual report, with 23H1 revenue of 566 million yuan (year-on-year + 1.70%), net profit of 49 million yuan (year-on-year + 32.01%), non-return net profit of 41 million yuan (year-on-year + 26.99%) and gross profit margin of 37.96% (year-on-year + 4.46 pct). 23Q2's revenue is 269 million yuan (year-on-year-3.36%, month-on-month-9.18%), net profit is 19 million yuan (year-on-year + 46.4%, month-on-month-38.1%), non-return net profit is 14 million yuan (year-on-year + 9.48%, month-on-month-47.08%), gross profit is 39.60% (year-on-year + 5.01% pct, month-on-month + 3.12 pct). Profit improvement is mainly due to the optimization of the company's product structure and the strategic contraction of the sheet metal cutting business with low gross profit margin, resulting in an increase in overall gross profit.
Optical testing is in great demand. The company assists customers in developing their second-generation MR products and plans to join more optical testing projects. With the official launch of the product, it is expected to drive the overall demand of the MR track and further stimulate the overall growth of the consumer electronics industry. With the improvement of the integration of customer VCSEL chip modules and the reduction of module size, the company is expected to get involved in more testing process sections in the production of VCSEL chip modules, and provide more testing equipment for the same testing process section. With the gradual development of the XR industry, the camera module is expected to usher in more functional innovation about spatial information collection in the future. The company deeply cooperates with the supporting R & D work of customer-related products and obtains some project orders.
The layout of the new track worked, and the new business continued to expand. In terms of lithium electricity, most of the orders obtained by the company in 2023 are energy storage-related lasers and corresponding accessories. In the new round of laser procurement of lithium electric high-speed demonstration production line, the company's laser products replace imported lasers in a large proportion and have become the first choice for customers in lithium electromachining. In addition, the company develops lithium welding front, middle and rear monitoring modules for customers to further improve the welding yield of each structure of the battery. In terms of photovoltaic, the company won the first 100 MW order in 2023 and partnered with Xiexin Optoelectronics, a leader in perovskite photovoltaic cells, to build a complete set of laser scribing equipment for the production of 100MW perovskite photovoltaic batteries. At the end of July 2023, the complete set of 100MW perovskite laser marking equipment has been successfully delivered to the client. At present, the company has begun to lay out and develop the next generation GW production line. With the maturity of its own technology, it will occupy a more important position in the future photovoltaic industry.
Profit forecast. We believe that after the new business development is gradually landed, the company's revenue and net profit are expected to grow rapidly. It is estimated that the net profit of the company belonging to the shareholders of the listed company from 2023 to 2025 is 155 million yuan, 232 million yuan and 330 million yuan, and the EPS is 1.63,2.44,3.47 yuan respectively. With reference to comparable companies, considering the continued development of the company's lithium power and photovoltaic business, the volume and price of new consumer electronics projects are expected to rise in the future, giving 2023 dynamic PE 45-50 times, corresponding to a reasonable value range of 73.35 yuan-81.50 yuan, given a "better than the big market" rating.
Risk hint. 3C industry growth slowdown affected the development of the laser industry is lower than expected, industry competition is higher than expected, the company's new product sales are not as expected.